Pradhan Mantri Mudra Yojana Details
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. The scheme facilitates micro credit/Loan up to Rs. 10 lakh to income generating micro enterprises engaged in the non farm sector in manufacturing, processing, trading or service sector. MUDRA supports Financial Intermediaries to extend loans to the non-corporate, non-farm sector income generating activities of micro and small entities.
These Micro and small entities comprises of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban
The loans under MUDRA scheme can be availed only through banks and lending institutions which include:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Institutions offering micro finance
- Financial companies other than banks
Interest rate
Interest rates are charged as per the policy decision of the bank. However, the interest rate charged
to ultimate borrowers shall be reasonable.
Upfront fee/Processing charges
Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived by most banks.
Note
There are no agents or middleman engaged by MUDRA for availing of Mudra Loans. The borrowers are advised to keep away from persons posing as Agents/ facilitators of MUDRA/PMMY.
Pradhan Mantri Mudra Yojana Benefits
The benefits under the scheme has been classified under three categories as ‘SHISHU’, ‘KISHOR’ and ‘TARUN’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur.
- Shishu: Covering loans up to Rs. 50,000/-
- Kishor: Covering loans from Rs. 50,001 to Rs. 5,00,000/-
- Tarun: Covering loans from Rs. 5,00,001 to Rs. 10,00,000/-
Eligibility
Eligible borrowers
- Individuals
- Proprietary concern.
- Partnership Firm.
- Private Ltd. Company.
- Public Company.
- Any other legal forms.
The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record. The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity. The need for educational qualification, if any, need to be assessed based on the nature of the proposed activity, and its
Application Process
- Following are the prerequisites for the enrollment process:
ID Proof
Address Proof
Passport size photograph
Applicant Signature
Proof of Identity / Address of Business Enterprises
- Go to PM MUDRA official website (https://www.mudra.org.in/)after that we select the Udyamitra portal – https://udyamimitra.in/
- Click on Mudra loan “Apply Now”
- Select one of the following: New entrepreneur/ Existing Entrepreneur/ Self employed professional
- Then, Fill name of applicant, email and Mobile number and Generate OTP
After Successful Registration
- Fill Personal Details and Professional Details
- Select hand holding agencies if any help Required for preparing project proposal etc. otherwise click “Loan Application Center” and apply now.
- Select the category of loan required – Mudra Sishu / Mudra Kishore/ Mudra Tarun etc.
- The applicant then needs to fill the Business Information like business name, Business Activity etc. and select Industry type like Manufacturing, service, Trading, Agricultural allied.
- Fill Other Information like Fill the director Details, Banking/ Credit facilities Existing, Credit facilities Proposed, Future estimates and Preferred Lander
- Attached all required Document: ID proof, address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise etc.
- Once the application for is submitted an Application Number gets generated which needs to be Kept for Future Reference.
Documents Required
For Sishu Loan
- Proof of identity – Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo Ids issued by Govt. authority etc.
- Proof of Residence : Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
- Applicant’s recent Photograph (2 copies) not older than 6 months.
- Quotation of Machinery / other items to be purchased.
- Name of Supplier / details of machinery / price of machinery and / or items to be purchased.
- Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any
- Proof of category like SC / ST / OBC / Minority etc.
For Kishore and Tarun Loan
- Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
- 2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
- Proof of SC/ST/OBC/Minority.
- Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
- Applicant should not be defaulter in any Bank/Financial institution.
- Statement of accounts (for the last six months), from the existing banker, if any.
- Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
- Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
- Sales achieved during the current financial year up to the date of submission of application.
- Project report (for the proposed project) containing details of technical & economic viability.
- Memorandum and articles of association of the company/Partnership Deed of Partners etc.
- In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
Frequently Asked Questions
Is Khadi Activity Eligible Under PMMY Loans?
- Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.
Are MUDRA Loans Available For Purchase Of CNG Tempo/Taxi?
- MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.
I Have A Savings Bank Account With Corporation Bank, UNNARO Bank. Would Loans Under MUDRA Be Available Based On The SB Account?
- Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.
Under PMMY-Shishu Loans, What Is The Turn Around Time For Processing The Loan Proposal?
- For Shishu loans, normally the turn-around-time for processing the loan proposals on receipt of complete information is 7 to 10 days.
Is It Required To Submit It Returns For The Preceding 2 Years For Availing Loan Of `10 Lakh Under PMMY?
- Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.
